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Lower Canola Prices in 2012?

Lower Canola Prices in 2012?


Farmers have received very good prices for the oilseed during the past couple of years, but one analyst says growers may have to reign in their expectations in 2012.

"These markets are cyclical," says Mike Jubinville, an analyst with Pro Farmer Canada. "Not to say that I think we are going into a collapse. I don't believe that. But I think the highs may be in the process of being experienced and we may fade back a bit." 

Jubinville says there will still be opportunities to lock in a profit, but margins may be a little tighter next year.

"In the bad times, it always seem like it's never going to end. In the good times, we think it's going to go on forever, but it doesn't work that way in agriculture," says Jubinville. "We've gone through a two year bullish cycle in ag commodities. We may be starting to see a process where we take a bit of a break."

The biggest concern is market volatily caused by international events, such as the staggering Greek economy and the European currency crisis.

Jubinville made the comments following a presentation at the Canola Expo in Yorkton on Wednesday.  

Source: Saskatoonhomepage.ca


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